B/E Aerospace Announces Launch of New Seating Product Line and Four New Seating Orders Valued Initially At $58 Million
WELLINGTON, Fla.--(BUSINESS WIRE)--June 30, 1998--B/E Aerospace, Inc. (Nasdaq-NMS: BEAV - news) today announced that the Company has been selected to provide First Class sleeper seating to a major European carrier, which has become the launch customer for B/E's private-compartment, ''lie-flat'' sleeper seats, which will be installed in 20 aircraft in their widebody international fleet. The initial value of the contract is $16 million, with the potential to expand the order further as the airline outfits additional widebody aircraft and takes delivery of widebody aircraft currently on order. Deliveries for the 20 retrofit aircraft are scheduled to begin in Fall 1999 and will run over a six-month period.
B/E also announced new seating orders from Delta Airlines, International Lease Finance Corporation (ILFC), Air China and Malaysian Air Systems (MAS). Including the First Class seating program discussed above, these new seating orders aggregate approximately $58 million, which is a continuation of Seating Product Group's (SPG) very strong bookings in the first quarter, a period during which the Group had a book-to-bill ratio of 1.3 to 1.
The Delta order, valued at $32 million, covers deliveries scheduled to begin in October 1998 for Premium Class seating to retrofit 53 of the carrier's MD-11 and Boeing 767 aircraft. As announced earlier, Delta previously selected B/E as the provider of new Premium Class ''signature'' seating for their B777-200 fleet.
ILFC and Air China have both selected B/E as the supplier of Main Cabin seating for their new Boeing 777 aircraft, while MAS has selected B/E for its Main Cabin seating as part of their recently announced B747 retrofit program. The initial ILFC, Air China and MAS deliveries, valued in aggregate at $10 million, are scheduled for deliveries beginning later this year.
B/E Vice Chairman and Chief Executive Officer Robert J. Khoury stated, ''We are very excited about winning our initial First Class sleeper seating order from a major, well- respected European carrier. Private-compartment First Class seats for international long-haul widebody aircraft represent a new segment of the commercial aircraft seating market for B/E, and our launch customer provides significant momentum to our new 'International First Class' seat product offerings.''
''Four years ago, when B/E made a commitment to become a market leader in the Premium/Business Class seating segment, our market share was approximately 12 percent. We have since grown the business such that we now have more than half the ongoing sales in this key seating category. B/E's new generation Business Class seats have essentially closed the 'comfort gap' with First Class models, and we have effectively put pressure on the entire First Class seating category to upgrade even further.''
''B/E is now making a similar commitment in the First Class sleeper seating market. We have every hope of achieving the same degree of success as we've had in Business Class.''
Khoury continued, ''The new seating orders from Delta, ILFC, Air China and MAS are a further reflection of the fundamental strength of the market as airlines continue to equip both new-build and retrofit aircraft.''
B/E Aerospace, Inc. designs, manufactures, sells and services a broad line of commercial aircraft and general aviation cabin interior products, including seating products, cabinetry, passenger entertainment systems, a full line of passenger and crew oxygen and protective breathing equipment, passenger service systems and components and a complete line of food and beverage preparation and storage equipment. B/E Aerospace is the world's leading supplier of cabin interior products and services, serving virtually all the world's airlines, aircraft manufacturers and business jet owners.
This press release contains forward-looking statements that involve risks and uncertainties that may cause the Company's actual experience to differ materially from that anticipated. Factors that might cause such a difference include, but are not limited to, those discussed in the Company's filings with the Securities and Exchange Commission, including its most recent Form 10-Q, proxy statement and Form 10-K, and in ''Risk Factors'' in its Form S-4 filed on March 9, 1998, relating to the Company's recent senior subordinated notes offering, as well as future events that have the effect of reducing the Company's available cash balances, such as unexpected operating losses or delays in the integration of the Company's seating business or the delivery of the MDDS interactive video system or capital expenditures or cash expenditures related to possible future acquisitions. |
